VUB Covered Bonds

Location:

Slovak Republic

Project number:

50865

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

13 Mar 2019

Status:

Signed

PSD disclosed:

12 Apr 2019

Translated  version of this PSD: Slovak

Project Description

Investment of up to €165 million, in a series of mortgage CBs to be issued by Všeobecna uverova banka, a.s. ("VUB") over a period of 3 years with a target investment of up to 20% of each issue. The Project falls under the EBRD's Covered Bond Framework II for Slovakia.

Project Objectives

The transaction will support the Issuer to access medium- to long-term funding by using a covered bond instrument collateralised by a pool of residential mortgage loans.

Transition Impact

The Project will (i) help VUB to set the basis for the repetitive issuances of larger size covered bonds in the future, (ii) support further increase in diversification of the funding sources via stable financing instruments, (iii) address asset-liability maturity mismatches, and (iv) contribute to building up a critical mass of outstanding covered bonds in Slovakia by supporting the largest covered bond issuance in the country, and potentially attracting a wider investor base. Moreover, the Project will contribute to achieving the Bank's GET mandate, as VUB has agreed to commit part of EBRD proceeds invested into covered bonds to be used in line with the Bank's GET eligibility criteria.

Client Information

VSEOBECNA UVEROVA BANKA (VUB) AS COVERED BONDS

VUB is the second largest universal bank in Slovakia with 19% market share by total assets and the second largest player in the mortgage loans market, with 22% market share.

EBRD Finance Summary

EUR 165,000,000.00

Up to €165 million.

Total Project Cost

EUR 825,000,000.00

Up to €825 million.

Environmental and Social Summary

Category FI. VUB is a client of long-standing and has demonstrated on-going compliance with the Bank's environmental, health, safety and social requirements. For the proposed transaction, VUB will be required to comply with Performance Requirements 2, 4 and 9; and adopt and implement the Bank's E&S Procedures for Mortgage Lending.

Technical Cooperation

None.

Company Contact Information

Treasury and ALM department
bonds@vub.sk
www.vub.sk

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.